Macroeconomics: UK economy, IB Economics

An odd day today, with the Subsidy Control Bill replacing EU-wide rules on state aid and everyone wondering what this will mean for the level of government support for UK business, not least the EU who fear that it will give us a competitive advantage.

And for those of us old enough, it's just odd in that it's a Conservative government seeming to espouse interventionism and picking winners, when for the previous 40 years they've been opposed to this. 

Either way, an important part of Britain's post-Brexit industrial policy. 

Not only were the EU's red lines clear, so was the fact that we'd end up in this position. Especially since a certain person became Prime Minister...

Oh, twist the knife, why don't you? 

Well, if we want sovereignty, we have to accept that the EU must be allowed sovereignty too, so provided we agree to maintaining a 'level playing field' during any no deal transition period, the EU will legislate to permit British transport access to the EU.

I suspect the grim reality of holding 72 off suit in a game of Texas Hold'em is starting to hit home. 

I'm not convinced by the timing of this, with the Prime Minister about to embark for Brussels; however, it seems that the UK is going to drop tariffs on US goods in a dispute over the level of state support received by Boeing in an attempt to conclude a trade deal with the US.

It all seems to smack of acting in bad faith - although I'm sure it will be presented as an issue of sovereignty, of us striking out on our own and so on. 

Of course, we do far less business with the US than the EU and, to my mind, it will reinforces fears about the notion of a 'level playing field' and also give rise to country of origin issues, with the EU fearing that US companies will export to the UK, and then re-export to the EU under any future trade deal. Assuming there is one.  

The BBC News take on the ongoing Brexit negotiations - lots to ponder here - not least the fact that both sides appear to have different views of how the talks have been progressing. 

This article does what it says on the tin...

More Newsnight coverage of the Brexit negotiations - will we leave without a deal. It seems increasingly likely. 

Faisal Islam identifies the major sticking point in Brexit negotiations and explains why it's so controversial. It's all about the 'level playing field' and trying to do away with the need for future tariff measures in the event that on party tries to deviate from an 'acceptable norm'.

The EU fear is that the UK will use its position outside the EU to lower some standards, perhaps with regard to state aid, giving its firms a competitive advantage - which from their perspective doesn't strike me as unreasonable. Of course, if you've spent the last four years pretending that you hold all of the cards, climbing down from that position looks weak. Or perhaps reflects the fact that you'll have to admit that you were lying all along. 

Yawn...